Staying In Business and Out of Court Tennessee Real Estate Foundation and the Association of Realtors

L EGAL C ASE R EVIEW

4 Tips to Reduce Risk Fill out property disclosure form Always recommend home inspections Recommend home warranties Always use current approved sales contracts

Mistake Misrepresentation Fraud

Avoiding Antitrust Risk

Fair Housing Concerns

ADA: Americans with Disabilities Act

Real Estate Settlement Procedures Act 1.Federally related mortgage 2.Referral 3.Agreement or understanding 4.Thing of value 5.For the referral of settlement services

TREC’ S R ULES FOR G ENERAL AND I NTERNET A DVERTISING

Internet Advertising

General Principles of Advertising

 Exclusions  Relation to property  Non-covered costs

Traditional Agency

Designated Agency

Changes to Agency Status Any change in agency status in a given transaction must be discussed and approved in advance with your client and confirmed in writing.

Minimum Service Requirements Under Law  Scheduling all property showings on behalf of the client  Receiving all offers and counter offers  Answering any questions the client may have  Upon waiver of any of these duties, the consumer may not expect or seek assistance from any other licensees in the transaction for the performance of these duties

What You Should Know About Tennessee Agencies

Common Myths and Misconceptions

MYTH: An agency relationship can be “implied,” created “accidently,” or created simply by a licensee’s actions, statements or behavior.

MYTH: You can be a seller’s agent (the listing agent) and a facilitator for the buyer at the same time.

MYTH: If you’re not sure what your agency status is at the time you submit a written confirmation of agency status, then it’s probably safest to check several boxes… since one of them is sure to be correct!

MYTH: You can’t sell your own listing without changing your agency status in the transaction to facilitator.

MYTH: Designated agency is intended solely for in- house transactions.

MYTH: The managing broker remains a dual agent even if the buyer and seller are each represented by different designated agents in the broker’s office.

MYTH: An office-wide agency policy is unnecessary. Each license should just select the type of agency (or non- agency) relationship that works best for him or her.

MYTH: Licensees in Tennessee are still subject to the common law of agency.

What may an unlicensed employee do?

C ASE S TUDY : K EEPING I T C ONFIDENTIAL

CASE STUDY: Agency Dilemma